That may not apply to you, as a financial professional, but I thought I would share the story.Obiously you could re-lever your portfolio to bring the ROE back up, but then you have to place those borrowed funds somewhere that nets a high enough return that the portfolio is ahead, given the drag of the interest and any transaction fees.    

From a transactional cost standpoint alone, the fees on the way in and on the way out require significant appreciation to break even.

How does the transaction work between me personally and my holding company LLC?

Yes, that makes perfect sense, especially in such a large transaction to find the replacement property.

Of course our big motivation is commission but you can get commission or a referral fee or something in an off market transaction if done properly.

The IRS views it as taxable income because it’s not being used for the purpose of deferring taxes under the 1031 rules.For example, if you sell a property and only use part of the proceeds for the next investment, the leftover amount (after paying transaction costs, etc.) is taxed.

I would absolutely use an attorney to facilitate this type of transaction.

And I think today they are back to basically working large transaction between hedgefunds and Large owners..

This brings me to now, I've taken this approach and have used my own money in lending, but am also bringing in friends and family to take part in these transactions so they can earn way better returns than with CD's.

My first MF I represented the buyer on I made 100k. for maybe a weeks worth of work. 3. if your going to be looking a more resi style duplex 4 plex a lot of those get listed and having access to the MLS is far superior to any other on line listing service ONE simply because you will be able to talk to the actual LIsting agent not someone paying for leads.And then of course having access to MLS lock box's and not relying on agents.. this is huge.Now if your maybe going to buy one property sometime in the future and you have no interest in learning the RE laws of your state or making any money with transactional real estate then sure.. its a pass.. although I would still recommend the pre license course so you learn the basics  the vocabulary and states unique laws.. knowledge is power in RE.